Revenues for fourth quarter and full year 2025 of $11.8 million and $40.7 million, up 60% and 28% respectively, year-over-year; the strong growth driven by accelerating AI demand
Investing strongly in enhancing capabilities, while remaining profitable with FY 2025 net profit of $1.0 million and adjusted EBITDA of $4.4 million
TEL AVIV, Israel, March 19, 2026 (GLOBE NEWSWIRE) -- Alarum Technologies Ltd. (Nasdaq: ALAR, TASE: ALAR) ("Alarum" or the "Company"), a global provider of web data collection solutions, today announced its financial results for the fourth quarter and full year ended December 31, 2025.
Financial Highlights of Full Year 2025
-- 2025 revenues of $40.7 million, up 28% year-over-year compared to $31.8
million in 2024.
-- Gross margin of 58.5% compared with 75.1% in 2024, reflecting strategic
investments in infrastructure expansion, enterprise customer support
capabilities, and product development.
-- Operating expenses of $23.6 million, compared with $17.2 million in 2024.
-- Net profit of $1.0 million compared with $5.8 million in 2024.
-- Adjusted EBITDA of $4.4 million compared with $9.4 million in 2024.
Financial Highlights of Fourth Quarter of 2025
-- Fourth quarter of 2025 revenues of $11.8 million, up 60% year-over-year.
-- Gross margin of 53.8%, compared with 72.4% in the fourth quarter of 2024.
-- Net profit of $0.2 million compared with $0.4 million in the fourth
quarter of 2024.
-- Adjusted EBITDA of $1.0 million, compared with $1.5 million in the fourth
quarter of 2024.
-- Revenue growth in the quarter was driven primarily by expanding workloads
from large-scale artificial intelligence ("AI") customers and broader
adoption of the Company's data infrastructure products.
Management Commentary
"2025 marked a transformational year for Alarum, as the Company rapidly scaled its organization, infrastructure and product platform to support the significant growth of the global AI ecosystem," said Shachar Daniel, Chief Executive Officer of Alarum. "Over the course of the year, Alarum experienced several important structural transformations as the global AI ecosystem rapidly expanded. These included a significant increase in data workloads across our infrastructure, a shift toward enterprise-scale customer engagements, and the continued evolution of our platform from a proxy-focused offering into a broader data infrastructure solution serving the AI ecosystem."
Continued Mr. Daniel, "At the same time, the broader market experienced a major shift as AI development accelerated globally. As a result, the Company increasingly became part of the rapidly expanding AI data infrastructure ecosystem, providing the critical capabilities required for collecting large volumes of public web data used to train and continuously improve AI models. During 2025, we effectively transitioned from a proxy-focused company into a broader data infrastructure platform serving the global AI ecosystem."
"One of the most notable developments during the year was the dramatic increase in data workloads across our platform, which expanded multiple times during 2025 as AI developers significantly increased their demand for large-scale public web data."
"As the scale of our customers' AI workloads increased, we also experienced a shift in our customer engagement model, moving from primarily self-service online relationships toward deeper enterprise engagements that include dedicated support, performance monitoring, documentation and long-term infrastructure partnerships."
"In parallel, we continued expanding beyond our historical proxy offering into a broader portfolio of data infrastructure solutions, including Website Unblocker, search engine results page ("SERP") solutions and large-scale datasets, which together represent a growing portion of our platform."
"Because many AI developers are still in the experimentation phase of model development, demand patterns can fluctuate in the near term as companies iterate on architectures and periodically refresh very large datasets. However, we believe the rapid global expansion of AI is fundamentally increasing the demand for large-scale public web data, positioning our platform at the center of this structural industry shift.
"At this stage of the market's development, we view the Company as being in a platform-building phase, focused on expanding infrastructure, product capabilities and enterprise relationships in order to strengthen our long-term positioning within the AI data infrastructure market."
Chen Katz, Chairman of Alarum's board of directors, added: "2025 marked another milestone year for Alarum, reflecting our strong execution and consistent year-over-year growth as we continue building a platform for sustainable long-term expansion. Over the past five years, revenues have grown by more than 700%, representing a compound annual growth rate of over 50%. At the same time, shareholders' equity has increased by approximately 143% over the past two years, reflecting the value created for our shareholders as we scale the Company and strengthen its financial position. During 2025, we invested significantly in infrastructure, technology and talent, while also expanding support capabilities and strengthening relationships with leading and strategic players across the rapidly evolving AI ecosystem. Importantly, these investments were made while deliberately maintaining profitability as part of our disciplined long-term strategy."
Selected Fourth Quarter 2025 Operating Trends
-- Significant increase in average revenue per customer: Driven primarily by
expansion of AI workloads among existing customers.
-- Continued growth in demand for large-scale public web data used for AI
model training and dataset refresh cycles.
-- Increasing complexity in web data collection as websites deploy more
sophisticated protections, raising barriers to entry and favoring
companies with advanced infrastructure capabilities.
-- Continued growth in adoption of newer products including Website
Unblocker, SERP solutions and large-scale datasets.
-- Significant shift in market verticals -- the Company continues to
experience a notable shift in customer segments, with very strong growth
in the AI vertical, offsetting a decline in legacy markets. As a result,
the Net Retention Rate ("NRR") was 0.83, while overall revenues continue
to grow strongly on a year-over-year basis.
Selected 2025 Business Highlights
-- Organizational Growth and Scaling: During 2025, Alarum experienced
significant internal growth, investing and expanding its operating
footprint which can handle the significant increase in its revenue. The
Company also strengthened its organizational structure with expanded
research and development teams, product development capabilities,
customer success operations and account management functions in order to
support rapidly increasing enterprise workloads.
-- Expansion of AI Data Infrastructure Capabilities: The Company continued
investing heavily in expanding its infrastructure and technological
capabilities to support rapidly increasing AI-related workload and the
growing complexity of large-scale web data collection.
-- Evolution Toward Enterprise Customer Relationships: As AI developers
scale their operations, many require enterprise-grade data
infrastructure. During 2025, the Company increasingly transitioned from
primarily self-service online customers toward deeper enterprise
relationships requiring higher service levels, dedicated support and
long-term infrastructure collaboration.
-- Product Platform Expansion: Alarum continued evolving from a
proxy-focused provider into a broader multi-product AI data
infrastructure platform, offering solutions including Website Unblocker,
SERP solutions, datasets and advanced web data collection technologies.
Financial Outlook
"In the first quarter of 2026, we expect revenues of approximately $11.0 million (+/-7%), up 54% year-over-year, and Adjusted EBITDA of approximately $1.4 million (+/-$0.5 million)," said Shai Avnit, Chief Financial Officer of Alarum. "As the number of customers continues to grow and become more diversified, and the generations of models move into more structured production and fine-tuning cycles, we expect revenue growth patterns to become smoother and more predictable."
The Company is unable to present a reconciliation of estimated Adjusted EBITDA to net profit as it is unable to predict with reasonable certainty, and without unreasonable effort, the impact and timing of certain expenses on net profit. The financial impact of these expenses is uncertain and is dependent on various factors, including timing, and could be material to consolidated statements of profit or loss and other comprehensive income (loss).
Summary of Financial Results(1)
(in millions of U.S. dollars, rounded, except per
share amounts and margins)
For the For the
Year Ended Three Months Ended
December 31, December 31,
-------------------------- ----------------------------
2025 2024 2025 2024
--------- ----------- ------------- -------------
(Audited) (Audited) (Unaudited) (Unaudited)
--------- ----------- ------------- -------------
Revenue 40.7 31.8 11.8 7.4
Gross profit 23.8 23.9 6.4 5.3
Gross margin (in
percentage) 58.5% 75.1 % 53.8% 72.4 %
Non-IFRS gross
margin (in
percentage) 60.4% 77.0 % 57.1% 74.3 %
Total operating
expenses 23.6 17.2 6.4 5.0
Financial
income, net 1.3 0.3 0.3 0.2
Tax expense 0.5 1.2 0.1 0.1
Net profit 1.0 5.8 0.2 0.4
Adjusted EBITDA 4.4 9.4 1.0 1.5
Basic earnings
per American
Depository
Share ("ADS")
(in U.S.
dollars) $0.14 $0.87 $0.03 $0.06
Non-IFRS basic
earnings per
ADS (in U.S.
dollars)(2) $0.65 $1.26 $0.15 $0.20
Cash, cash
equivalents and
debt
investments
(including
accrued
interest)(3) 22.5 25.0 22.5 25.0
Shareholders'
equity(3) 32.1 26.4 32.1 26.4
(1 The table below contains certain non-IFRS financial measures. See "Use of Non-IFRS Financial Results" for additional information regarding these measures and reconciliations to the most comparable IFRS measures.2 Non-IFRS basic earnings per ADS is calculated by dividing non-IFRS net profit by the same number of ADSs used for the IFRS Basic earnings per ADS calculation.3 As of the last day of the period.)
Fourth Quarter and Full Year 2025 Financial Analysis
-- Revenue in the fourth quarter of 2025 totalled $11.8 million (a 60.0%
increase compared to $7.4 million in the fourth quarter of 2024), and
$40.7 million for the full year 2025 (a 28.1% increase compared to $31.8
million in 2024). The growth was driven mainly by strong demand for the
Company's services by a large-scale customer building foundational AI
models, as well as increased sales of new products.
-- Cost of revenue in the fourth quarter of 2025 was $5.5 million (fourth
quarter of 2024: $2.0 million) and $16.9 million for the full year 2025
(2024: $7.9 million). This increase was primarily driven by the Company's
engagement with a large-scale AI customer, which requires data gathering
at a significantly larger scale, in turn necessitating a larger volume of
servers as well as a stronger and higher-quality infrastructure.
Additionally, cost of revenue was impacted by initial new product sales,
which triggered related third-party costs, and these particular
third-party costs are expected to decrease in the near-term.
-- Gross profit in the fourth quarter of 2025 amounted to $6.4 million
(fourth quarter of 2024: $5.3 million), and $23.8 million for the full
year 2025 (2024: $23.9 million).
-- Operating expenses in the fourth quarter of 2025 totalled $6.4 million
(fourth quarter of 2024: $5.0 million), and $23.6 million for the full
year 2025 (2024: $17.2 million). This increase resulted from higher
revenues and operations, primarily attributed to research and development
expenses and, to a lesser extent, to sales and marketing expenses. It is
noted that this increase is a key part of Alarum's strategy to invest in
its infrastructure and capacity, which are intended to position the
Company to capture significant long-term growth as demand for
high-quality AI training data continues to expand.
-- Financial income, net, in the fourth quarter of 2025 was $0.3 million
(fourth quarter of 2024: $0.2 million), and $1.3 million for the full
year 2025 (2024: $0.3 million). This increase was primarily driven by
exchange rate gains due to a weaker U.S. dollar against the Israeli
shekel, as well as higher interest income from cash and debt investments,
and lower interest expense following the reduction of the Company's
long-term loan balance.
-- Net profit in the fourth quarter of 2025 was $0.2 million (fourth quarter
of 2024: $0.4 million), and $1.0 million for the full year 2025 (2024:
$5.8 million).
-- As of December 31, 2025, shareholders' equity increased to $32.1 million,
up from $26.4 million as of December 31, 2024. The increase is mainly due
to share-based compensation recorded during 2025, as well as the equity
settlement of a long-term loan and the Company's net profit.
-- Total cash, cash equivalents and debt investments as of December 31,
2025, was $22.5 million, compared to $25.0 million as of December 31,
2024.
-- Outstanding ordinary share count as of December 31, 2025, was
approximately 71.8 million shares, representing 7.2 million Nasdaq-listed
ADSs.
Fourth Quarter and Full Year 2025 Financial Results Conference Call
Mr. Shachar Daniel, Chief Executive Officer of Alarum, and Mr. Shai Avnit, Chief Financial Officer of Alarum, will host a conference call today, March 19, 2026, at 08:30 a.m. ET, 05:30 a.m. Pacific time, 14:30 p.m. Israel, to discuss the fourth quarter and whole year 2025 results and financial outlook, followed by a Q&A session.
To attend, log in here: https://viavid.webcasts.com/starthere.jsp?ei=1754185&tp_key=14214fb804
Alternatively, dial one of the following numbers, a few minutes before the call starts:
1-877-407-0789 or 1-201-689-8562.
If you are unable to connect using the toll-free number, please try the international dial-in number. An Israeli toll-free number is: 1 809 406 247. Participants will be required to state their name and company upon dialling in.
A replay of the call will be available a few hours following the call. To access the replay, visit the Company's website at http://alarum.io/events/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. For example, Alarum is using forward-looking statements in this press release when it discusses the continued development and expansion of the global AI ecosystem and related demand for large-scale public web data, the significant increase in data workloads across the Company's platform and the evolving needs of AI developers, that the demand patterns can fluctuate in the near term, the Company's focus and ongoing evolution from a proxy-focused offering into a broader portfolio of data infrastructure solutions, including Website Unblocker, SERP solutions and large-scale datasets, the Company's strategy of investing in infrastructure, product capabilities and enterprise relationships as part of its platform-building phase to strengthen its long-term positioning within the AI data infrastructure market, significant shift in market verticals, its efforts to scale its organization and operations to support enterprise customers and long-term growth, its expectations regarding operating expenses and its estimates regarding first quarter 2026 revenues and Adjusted EBITDA. Because such statements deal with future events and are based on Alarum's current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Alarum could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading "Risk Factors" in Alarum's annual report on Form 20-F filed with the Securities and Exchange Commission ("SEC") on March 20, 2025, and in any subsequent filings with the SEC. Except as otherwise required by law, Alarum undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Alarum is not responsible for the contents of third-party websites.
Condensed Consolidated Statements of Financial Position
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
-------------------------------------------------------------------------
December 31,
2025 2024
--------- --------
(Audited)
-------------------
Assets
Current assets:
Cash and cash equivalents 12,267 15,081
Trade receivables, net 11,796 3,231
Other receivables 1,271 503
--------- --------
25,334 18,815
--------- --------
Non-current assets:
Long-term deposits and restricted deposits 400 124
Other non-current assets 82 82
Property and equipment, net 190 130
Right-of-use assets 2,750 498
Deferred tax assets 866 422
Debt investments at fair value through other
comprehensive income 9,496 9,256
Debt investments at fair value through profit or
loss 592 555
Intangible assets, net 2,064 811
Goodwill 4,118 4,118
--------- --------
Total non-current assets 20,558 15,996
--------- --------
Total assets 45,892 34,811
--------- --------
Liabilities and equity
Current liabilities:
Trade payables 427 251
Other payables 7,930 4,484
Current maturities of long-term loan - 938
Contract liabilities 2,431 1,987
Derivative financial instruments - 148
Short-term lease liabilities 692 359
--------- --------
Total current liabilities 11,480 8,167
--------- --------
Non-current liabilities:
Other non-current liability 375 -
Long-term lease liabilities 1,947 261
Long-term loans, net of current maturities - 32
--------- --------
Total non-current liabilities 2,322 293
--------- --------
Total liabilities 13,802 8,460
--------- --------
Equity:
Ordinary shares - -
Share premium 114,792 111,892
Other equity reserves 12,888 11,012
Accumulated deficit (95,590) (96,553)
--------- --------
Total equity 32,090 26,351
--------- --------
Total liabilities and equity 45,892 34,811
--------- --------
Condensed Consolidated Statements of Profit or Loss
and Other Comprehensive Income (Loss)
-------------------------------------------------------------------
(in thousands of U.S. dollars, except per share amounts)
-------------------------------------------------------------------
For the For the
Full Year Ended Three Months Ended
December 31, December 31,
-------------------- ----------------------------
2025 2024 2025 2024
(Audited) (Audited) (Unaudited) (Unaudited)
--------- --------- ------------- -------------
Revenue 40,755 31,824 11,820 7,370
Cost of revenue 16,916 7,915 5,455 2,032
--------- -------- --------- ---------
Gross profit 23,839 23,909 6,365 5,338
--------- -------- --------- ---------
Operating
expenses:
---------------
Research and
development 7,526 4,495 1,862 1,210
Sales and
marketing 9,129 7,033 2,378 1,988
General and
administrative 6,977 5,661 2,094 1,749
--------- -------- --------- ---------
Total operating
expenses 23,632 17,189 6,334 4,947
--------- -------- --------- ---------
Operating
profit 207 6,720 31 391
Financial
income, net 1,266 281 267 163
--------- -------- --------- ---------
Profit from
operations
before income
tax 1,473 7,001 298 554
Tax expense 510 1,221 83 112
--------- -------- --------- ---------
Net profit for
the period 963 5,780 215 442
--------- -------- --------- ---------
Other
comprehensive
income (loss)
for the period
Change in fair
value of debt
investments 206 (80) (12) (80)
--------- -------- --------- ---------
Total
comprehensive
income for the
period 1,169 5,700 203 362
========= ======== ========= =========
Basic profit
per share $0.01 $0.09 $0.00 $0.01
--------- -------- --------- ---------
Diluted profit
per share $0.01 $0.08 $0.00 $0.01
--------- -------- --------- ---------
Basic profit
per ADS $0.14 $0.87 $0.03 $0.06
--------- -------- --------- ---------
Use of Non-IFRS Financial Results
In addition to disclosing financial results calculated in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board, this press release contains non-IFRS financial measures of EBITDA (EBITDA loss), Adjusted EBITDA (Adjusted EBITDA loss), non-IFRS net profit (loss), non-IFRS gross profit, non-IFRS gross margin and non-IFRS basic earnings (loss) per share or ADS for the periods presented. The Company defines EBITDA (EBITDA loss) as net profit (loss) before depreciation, amortization and impairment of intangible assets (if any), financial income (expense) and income tax; defines Adjusted EBITDA (Adjusted EBITDA loss) as EBITDA (EBITDA loss) as further adjusted to remove the impact of (i) impairment of goodwill (if any); and (ii) share-based compensation; defines non-IFRS net profit (loss) as net profit (loss) before depreciation, amortization and impairment of intangible assets (if any), impairment of goodwill (if any), financial income (expense) effects primarily related to derivative financial instruments as well as long-term loans, deferred tax effects and share-based compensation; defines non-IFRS gross profit as gross profit adjusted to remove the impact of depreciation, amortization and impairment of intangible assets and share-based compensation recorded under cost of revenues; defines non-IFRS gross margin as the percentage of the non-IFRS gross profit out of revenues; and defines non-IFRS basic earnings (loss) per share or ADS as non-IFRS net profit (loss) divided by the weighted average number of ordinary shares or ADSs.
The Company believes the non-IFRS financial information provided in this annual report on Form 20-F is useful to investors' understanding and assessment of the Company's ongoing operations. Management also uses both IFRS and non-IFRS information in evaluating and operating its business internally, and as such, deemed it important to provide this information to investors. The Company believes excluding items that neither relate to the ordinary course of business nor reflect our underlying business performance, enables management and our investors to compare our underlying business performance from period-to-period. In addition, The Company also believes these adjustments enhance comparability of our financial performance against those of other technology companies.
For example, The Company excludes amortization charges for our acquisition-related intangible assets for purposes of calculating certain non-IFRS measures, although revenue is generated, in part, by these intangible assets, to eliminate the impact of these non-cash charges that are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions. Also, The Company believes that the exclusion of share-based compensation expense is appropriate because it eliminates the impact of non-cash expenses for equity-based compensation costs that are based upon valuation methodologies and assumptions that vary over time, and the amount of the expense can vary significantly between companies due to factors that are unrelated to their core operating performance and that can be outside of their control. Although The Company excludes share-based compensation expenses from our non-IFRS measures, equity compensation has been, and will continue to be, an important part of our future compensation strategy and a significant component of our future expenses, and may increase in future periods
The non-IFRS financial measures disclosed by the Company should not be considered in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with IFRS, and the financial results calculated in accordance with IFRS and reconciliations to those financial statements should be carefully evaluated. Investors are encouraged to review the reconciliations of these non-IFRS measures to their most directly comparable IFRS financial measures provided in the financial statement tables herein.
Other Metrics
NRR is a key indicator of customer base health and revenue expansion. It is based on NRR point in time, which measures the revenue growth of current customers over the past four quarters, compared to the revenue generated from these customers during the same period a year earlier.
NRR is calculated as an average of the NRR points in time for the end of the current period and the three preceding quarters.
NRR > 1 (or 100%): Indicates revenue growth driven by existing customers, where upsells and cross-sells outweigh churn.
NRR < 1 (or 100%): Shows revenue loss due to churn exceeding gains from upsells or cross-sells.
Non-IFRS Financial Measures (in millions of U.S. dollars, unaudited, rounded) -------------------------------------------------
The following tables present the reconciled effect of the above on the Company's Adjusted EBITDA; non-IFRS net profit; and non-IFRS gross profit for the year and three months ended December 31, 2025 and 2024, and the year ended December 31, 2025 and 2024:
For the For the
Year Ended Three Months Ended
December 31, December 31,
--------------- -------------------------
Adjusted EBITDA 2025 2024 2025 2024
------------------------
Net profit for the
period 1.0 5.8 0.2 0.4
------ ----- -------- --------
Adjustments:
------------------------
Depreciation and
amortization 0.7 0.6 0.3 0.2
Financial income, net (1.3) (0.4) (0.3) (0.1)
Tax expense 0.5 1.4 0.1 0.1
------ ----- -------- --------
EBITDA 0.9 7.4 0.3 0.6
------ ----- -------- --------
Adjustments:
------------------------
Share-based compensation 3.5 2.0 0.7 0.9
------ ----- -------- --------
Adjusted EBITDA for the
period 4.4 9.4 1.0 1.5
------ ----- -------- --------
For the For the
Year Ended Three Months Ended
December 31, December 31,
--------------- -----------------------
Non-IFRS net profit 2025 2024 2025 2024
-----------------------
Net profit for the
period 1.0 5.8 0.2 0.4
------ ----- --------- --------
Adjustments:
-----------------------
Depreciation and
amortization 0.7 0.6 0.3 0.2
Financial expense
(income), net effects (0.1) 0.1 - (*)
Deferred tax effects (0.5) (0.1) (0.1) (0.1)
Share-based
compensation 3.5 2.0 0.7 0.9
Non-IFRS net profit for
the period 4.6 8.4 1.1 1.4
------ ----- --------- --------
* Less than $0.1 million
For the For the
Year Ended Three Months Ended
December 31, December 31,
--------------- ---------------------
Non-IFRS gross profit 2025 2024 2025 2024
--------------------------------
Gross profit for the period 23.8 23.9 6.4 5.3
------- ------ ---------- ---------
Adjustments:
--------------------------------
Depreciation and amortization 0.7 0.6 0.3 0.2
Share-based compensation 0.1 * 0.1 *
------- ------ ---------- ---------
Non-IFRS gross profit for the
period 24.6 24.5 6.8 5.5
------- ------ ---------- ---------
* Less than $0.1 million
About Alarum Technologies Ltd.
Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) is a global provider of web data collection solutions, empowering organizations to gain a competitive edge by streamlining the collection, extraction, and analysis of large-scale structured data from public online sources. Our data collection solutions by NetNut, are based on our world's fastest and most advanced and secured hybrid proxy network, which comprises both exit points based on our proprietary reflection technology and hundreds of servers located at our ISP partners around the world. Pushing the boundaries of innovation in data collection, we are building a robust platform, complemented by the Website Unblocker, Data Collector, Data Sets and AI data collector. As the impact of the AI revolution unfolds, Alarum, with its robust market-leading data collection offerings is preparing itself to play a meaningful role as the world reshapes in a new form.
For more information about Alarum and its web data collection solutions, please visit www.alarum.io.
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Investor Relations Contact:
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(END) Dow Jones Newswires
March 19, 2026 08:00 ET (12:00 GMT)
